Compensation audits
When public services are performed by an internal entity that performs them using a entrustment structure (in-house, direct procurement), the cost of providing such services is covered by paying compensation. It is important that the compensation is not overpaid, as in such case it shall be considered State aid incompatible with the internal market. It is therefore necessary to carry out periodic audits of compensation, which will eliminate the risk of State aid that is not compatible with the Common Market.
What can you do?
If you want to be sure that the funds you provide to your municipal company are legal, with particular emphasis on State aid and public finances, you must obtain an independent audit of the scope of compensation. Audits must be carried out wherever a contract is applicable without competitive procedures, whether it covers sectors of e.g. waste management, sport, public transport, culture, housing, or the development of green areas.
What is the threat?
By organizing an investment project or commissioning your municipal company to perform public tasks, you can lead to a situation when the funds paid out are inconsistent with the law. Thus, you will lead to a violation of the law and this may cause both perturbations on the part of the Regional Chamber of Auditors, as well as may even lead to a violation of public finance discipline.
What COMPER can do for you:
- Design the appropriate way to conduct compensation audits, and,
- Conduct a compensation audit,
- Determine the ranges of compliance with the law,
- Prepare correction of compensation settlements,
- Present before financial supervisory authorities,
- Prepare a budget correction,
- Develop a correction of the financial model of the public service provider.
In this respect Joanna Fornalczyk, PhD and the team can support you and prepare an Entrustments of Public Services Obligations for you.
